Monday, August 10, 2009

August Effect, SP Pivot Pattern

With Fridays potential turning points showing up in a number of markets, Early to Mid August was triggering some memories. Like last year; the SP500 had bounced up from 1200 on 7/15/08, to 1313 on 08/11/08, and then cratered from there to 839 on 10/10/08. Hmm, so took a quick look at 08/10 or there about, since 2000 and guess what...there is a consistent pivot. In 5 of the 8 samples the pivots are from completed corrections , 2 waves or 4th waves of lesser degree, and the subsequent moves are resuming the trend. In only 2 of the samples, '06 and '01 does it not show up. In '05 it's a great pivot, not from a correction completing, but rather beginning.Not sure what would explain it, perhaps just the kids wanna get out of town.Will work on getting some illustration of all this but take a look.

About Me

I have been applying Elliott Wave Theory to energy markets as a broker and as a trader for commercial entities since 1983.
This blog is merely my personal musings on various wave structure's and NOT any kind of trading recommendation or suggestion.